LICT Corporation (“LICT” or the “Company”; OTC Pink®: LICT), an integrated provider of broadband and voice services, today reported preliminary, unaudited financial results for the second quarter of 2026.

HIGHLIGHTS

  • Second quarter revenue increased 18.0% year-over-year to $40.6 million.

  • EBITDA increased $4.8 million year-over-year to $18.2 million with EBITDA margin of approximately 44.9%.

  • Net leverage remained at 1.5x trailing 12-month EBITDA.

Results from Operations

Second quarter 2026

Revenues

Total revenues were $40.6 million in the second quarter of 2026 compared with $34.4 million in the second quarter of 2025.

  • Non-regulated revenues rose 29.9% to $25.0 million, compared with $19.2 million in the second quarter of 2025.

  • Regulated revenues were $15.6 million in the second quarter of 2026, versus $15.1 million in the second quarter of 2025.

EBITDA

EBITDA for the second quarter of 2026 increased $4.8 million, to $18.2 million, compared to $13.5 million for the same period in 2025. EBITDA margin increased to 44.9% in the second quarter of 2026 compared with 39.2% in the prior-year period. The increase in EBITDA margin primarily reflected a $4.7 million EBITDA contribution from the Company’s work for a middle-mile fiber provider.

  • Non-regulated EBITDA for the second quarter of 2026 increased $4.9 million, or 68.8%, to $12.0 million, compared with $7.1 million in the second quarter of 2025. The increase primarily reflects a $4.7 million EBITDA contribution from the Company’s work for a middle-mile fiber provider.

  • Regulated EBITDA for the second quarter of 2026 was $6.2 million, compared to $6.4 million in the same period of 2025, reflecting a decrease of $0.2 million, or 2.2%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion.

The following table is a reconciliation of EBITDA:

Three Months Ended June 30,

(in thousands)

 

 

2026

 

 

2025

Operating profit

 

 

9,317

 

 

5,616

Adjustments:

  

Corporate expenses

1,341

1,436

Charitable contributions

 

 

2

 

 

3

Depreciation and amortization

 

 

7,567

 

 

6,418

Total adjustments

 

 

8,910

 

 

7,857

EBITDA (from operations)

 

$

18,227

 

$ 

13,473 

Net Income and Earnings per Share

Net income for the three months ended June 30, 2026 was $6.2 million, or $403 per share, compared with $3.2 million, or $198 per share, for the same period in 2025. The $3.0 million, or 95.7%, increase in net income primarily resulted from the following:

  • The Company’s work on a middle-mile fiber project increased net income by approximately $3.5 million, or $227 per basic and diluted share.

  • Increased E-ACAM support increased net income by approximately $0.6 million, or $38 per basic and diluted share.

  • Other income (expense) improved by approximately $0.5 million year-over-year, primarily reflecting a $0.5 million unrealized investment gain in the second quarter of 2026.

  • A $0.1 million decrease in corporate expenses.

These favorable items were partially offset by the following:

  • Depreciation and amortization expenses increased $1.1 million associated with recent infrastructure investments;

  • Cost of revenue increased $1.1 million reflecting expanded staffing, professional services, and higher repair and maintenance activity in the Company’s New Mexico and Utah operations;

  • An increase of $1.2 million in the Company’s provision for income taxes;

  • General and administrative costs increased $0.4 million.

Six months ended June 30, 2026

Revenues

Total revenues were $76.3 million in the six months ended June 30, 2026 compared with

$69.0 million in the six months ended June 30, 2025.

  • Non-regulated revenues rose 16.9% to $45.2 million, compared with $38.6 million in the six months ended June 30, 2025.

  • Regulated revenues were $31.1 million in the six months ended June 30, 2026, versus $30.3 million in the six months ended June 30, 2025.

EBITDA

EBITDA for the six months ended June 30, 2026 increased $4.9 million, to $32.2 million, compared to $27.3 million for the same period in 2025. EBITDA margin increased to 42.2% in the six months ended June 30, 2026 compared with 39.6% in the prior-year period. The increase in EBITDA margin was due primarily to a $4.9 million EBITDA contribution year to date from the Company’s work on a middle-mile fiber project.

  • Non-regulated EBITDA for the six months ended June 30, 2026 increased $5.1 million, or 35.4%, to $19.7 million, compared with $14.5 million in the six months ended June 30, 2025. The growth primarily reflected the EBITDA contribution from the Company’s work on a fiber-build project for a middle-mile provider, partially offset by increased operating costs associated with the Company’s ongoing network expansion activities.

  • Regulated EBITDA for the six months ended June 30, 2026 was $12.5 million, compared to $12.8 million in the same period of 2025, reflecting a decrease of $0.3 million, or 2.0%. The decline was primarily driven by increased operating costs, including higher expenses for expanded staffing and professional services related to our operational expansion.

The following table is a reconciliation of EBITDA:

 

Six Months Ended June 30,

(in thousands)

 

 

2026

 

 

2025

Operating profit

 

$

13,397

 

$

11,196

Adjustments:

  

Corporate expenses

3,255

2,845

Charitable contributions

 

 

17

 

 

7

Depreciation and amortization

 

 

15,517

 

 

13,245

Total adjustments

 

 

18,789

 

 

16,097

EBITDA (from operations)

 

$

32,186

 

$ 

27,293 

Net Income and Earnings per Share

Net income for the six months ended June 30, 2026 was $8.0 million, or $522 per share, compared with $7.3 million, or $453 per share, for the same period in 2025. The $0.7 million, or 10.0%, increase in net income primarily resulted from the following:

  • The Company’s work on a middle-mile fiber project increased net income by approximately $3.6 million, or $235 per basic and diluted share.

  • Increased E-ACAM support increased net income by approximately $1.2 million, or $77 per basic and diluted share.

These increases were offset by the following:

  • Depreciation and amortization expenses increased $2.3 million associated with recent infrastructure investments;

  • Other expense increased by approximately $1.1 million year over year. The increase reflected a $1.1 million unfavorable change in unrealized investment gains and losses and a $0.5 million increase in interest expense, partially offset by increases in investment income, equity earnings and other income;

  • Cost of revenue increased $1.6 million reflecting expanded staffing, professional services, and higher repair and maintenance activity in the Company’s New Mexico and Utah operations;

  • General and administrative costs and corporate expenses increased $0.8 million and $0.4 million, respectively.

The Company also recorded a $0.4 million increase in its provision for income taxes.

Liquidity and Balance Sheet Highlights

Liquidity

As of June 30, 2026, the Company had $68.6 million outstanding under its $100 million facility, with an average interest rate of 5.8%.

  • Net debt totaled $82.2 million as of June 30, 2026, compared to $80.3 million as of December 31, 2025.

  • Net debt leverage ratio, calculated as net debt divided by trailing 12-month EBITDA after Corporate Expenses, was 1.5x as of June 30, 2026.

The Company is currently in discussions with its lender to amend its revolving credit facility to increase total commitments from $100 million to $150 million. While no assurance can be provided that such amendment will be completed, the Company expects that, if consummated, the expanded facility would support ongoing capital expenditure programs, including broadband build-out initiatives and grant-related projects. As of June 30, 2026, the Company was in compliance with all applicable financial covenants under the agreement.

Capital Expenditures in the Second Quarter

Gross capital expenditures totaled $18.2 million in the second quarter of 2026, compared to $17.6 million in the prior-year period. Second quarter investments were focused on the continued build-out of E-ACAM broadband infrastructure and early-stage activities associated with ReConnect III and IV programs.

During the second quarter of 2026, the Company received $10.3 million in grant proceeds related to these network expansion initiatives. After giving effect to these grant reimbursements, net capital expenditures for the quarter were approximately $7.8 million. In addition, the Company also continued to invest in fixed wireless network expansion through its Sound Broadband subsidiary.

Capital Expenditures Year to Date

Gross capital expenditures totaled $32.3 million in the first six months of 2026, compared to $33.1 million in the prior-year period. First six months 2026 investments were focused on the continued build-out of E-ACAM broadband infrastructure and early-stage activities associated with ReConnect III and IV programs.

During the first six months of 2026, the Company received $14.8 million in grant proceeds related to these network expansion initiatives. After giving effect to these grant reimbursements, net capital expenditures for the first six months of 2026 were approximately $17.5 million. In addition, the Company also continued to invest in fixed wireless network expansion through its Sound Broadband subsidiary.

These investments remain essential to meeting the Company’s regulatory obligations while accelerating broadband expansion across LICT’s service territories. Through continued deployment of fiber and fixed wireless infrastructure, the Company is expanding network reach, increasing the number of serviceable locations, and positioning itself for future broadband subscriber and revenue growth in both existing and adjacent markets.

Other Assets and Investments

In addition to its core operations, the Company owns various complementary assets and investments, including spectrum licenses and minority interests in other entities. Management currently estimates that these assets collectively have a value in excess of $50 million.

Rural Broadband Expansion Accelerates: A Key Driver of Growth Government Programs

LICT continues to benefit from federal and state programs that support the expansion of high-speed broadband infrastructure in rural markets. The Company participates in the FCC’s Enhanced Alternative Connect America Cost Model (“E-ACAM”) program, which supports broadband deployment across LICT’s rural service territories.

  • E-ACAM provided $37.2 million in annual support during 2025. Following a one-time regulatory revision to the E-ACAM support levels, based on the FCC’s revised eligible locations list completed in December 2025, support will increase to $40.4 million in 2026, decline modestly in 2027, and stabilize at approximately $35.4 million annually from 2028 through 2038 for total expected support of approximately $541.7 million for the 15-year period ended 2038.

  • In addition, in the first quarter of 2026, the Company was awarded Broadband Equity, Access, and Deployment (“BEAD”) program grants totaling approximately $23.2 million, which require matching contributions of approximately $11.6 million, for total expected project costs of approximately $34.8 million. The Company is currently awaiting final agreements before executing contracts for these projects, which are expected to expand broadband service in both existing and adjacent service areas. Construction is anticipated to occur over the next two to five years.

Broadband Deployment and Subscriber Growth

Broadband services remain the primary growth driver of LICT’s telecommunications operations.

  • At June 30, 2026, LICT owned and operated 8,397 miles of fiber optic cable, an increase of 213 miles, or 3%, compared with 8,184 at December 31, 2025. The Company also operates 8,942 miles of copper cable, 850 miles of coaxial cable, 111 towers and 301 spectrum licenses (1,216 million MHZ-Pop).

  • Total broadband connections totaled 53,118. Broadband services now represent approximately two-thirds of total revenue-generating units, underscoring the Company’s continued transition toward data-driven services. Broadband services continued to grow during the quarter, while demand for traditional voice and video services declined. The decrease in fixed wireless connections primarily reflected customers migrating to fiber in areas where both services were available, highlighting continued adoption of the Company’s fiber network.

The table below provides a comparative summary of the Company’s subscriber and line metrics as of June 30, 2026, versus December 31, 2025.

 

June 30,

2026

 

December 31,

2025

 

Increase

(Decrease)

 

% Increase

(Decrease)

Broadband lines

46,278

 

43,976

 

2,302

 

 

5.2

%

Fixed Wireless subscribers

6,840

 

7,002

 

(162

)

 

(2.3

)%

Total Broadband

53,118

 

50,978

 

2,140

 

 

4.2

%

Voice lines

ILEC

15,891

 

16,203

 

(312

)

 

(1.9

)%

Out of franchise

4,727

 

5,142

 

(415

)

 

(8.1

)%

Total Voice lines

20,618

 

21,345

 

(727

)

 

(3.4

)%

Video subscribers

3,124

 

3,272

 

(148

)

 

(4.5

)%

Total revenue generating

units

76,860

 

75,595

 

1,265

 

 

1.7

%

During the first six months of 2026, growth in fiber broadband subscribers was partially offset by a decline in fixed-wireless subscribers as certain customers migrated to fiber-based services and the Company continued to optimize its broadband platform.

Strategic Initiatives

The Company continues to focus on improving the capital efficiency of its network investments. By incorporating fixed wireless technologies and alternative access solutions alongside fiber deployment, LICT is able to expand broadband coverage while reducing overall deployment costs in certain markets.

  • Returning Cash to Shareholders – During the second quarter of 2026, the Company repurchased 21 shares of its common stock for a total of $0.2 million. During the six months ended June 30, 2026, the Company has repurchased a total of 29 shares of its common stock for a total of $0.3 million. As of June 30, 2026, LICT had 15,297 shares outstanding.

  • Acquisition Completed – On July 1, 2026, the Company completed its previously announced acquisition of Gunnison Telephone Company. This strategic move reinforces the Company’s commitment to delivering high-quality telecommunication services while expanding its footprint to support the rural communities of Gunnison, Centerfield, Mayfield, Fayette, and Axtell. The Company plans to retain all Gunnison Telephone Company staff in their positions to expand their customer support. 

LICT Corporation

Statements of Operations

(Unaudited)

Three Months Ended June 30,

 

Six Months Ended June 30,

(in thousands, except share data)

 

 

2026

 

 

 

2025

 

 

 

2026

 

 

2025

 

 

Revenues

 

 

$

 

40,557

 

 

 

 

$

 

34,378

 

 

 

 

$

 

76,274

 

 

 

$

 

68,987

 

 

Cost and expenses:

  

Cost of revenue, excluding depreciation and amort.

18,926

17,867

 

37,057

35,461

General and administrative costs at operations

 

 

3,404

 

 

 

3,038

 

 

 

7,031

 

 

6,233

 

Corporate office expenses

 

 

1,341

 

 

 

1,436

 

 

 

3,255

 

 

2,845

 

Charitable contributions

 

 

2

 

 

 

3

 

 

 

17

 

 

7

 

Depreciation and amortization

 

 

7,567

 

 

 

6,418

 

 

 

15,517

 

 

13,245

 

Total costs and expenses

 

 

31,240

 

 

 

28,762

 

 

 

62,877

 

 

57,791

 

Operating profit

 

 

9,317

 

 

 

5,616

 

 

 

13,397

 

 

11,196

 

Other income (expense)

  

Investment income

 

68

 

58

993

 

842

Interest expense

 

 

(1,535

)

 

 

(1,248

)

 

 

(2,869

)

 

(2,395

)

Unrealized gain/(loss) on investment

 

 

545

 

 

 

—

 

 

 

(667

)

 

424

 

Equity in earnings of affiliated companies

 

 

47

 

 

 

—

 

 

 

47

 

 

(66

)

Other

 

 

117

 

 

 

(108

)

 

 

102

 

 

(97

)

Total other income (expense)

 

 

(758

)

 

 

(1,298

)

 

 

(2,394

)

 

(1,292

)

 

Income before income taxes

 

 

 

 

8,559

 

 

 

 

 

 

4,318

 

 

 

 

 

 

11,003

 

 

 

 

 

9,904

 

 

Provision for income taxes

 

 

(2,396

)

 

 

(1,168

)

 

 

(3,012

)

 

(2,638

)

Net income

 

$

6,163

 

 

$

3,150

 

 

$

7,991

 

$

7,266

 

Basic and Diluted Weighted-Average Shares

15,309

 

 

 15,940

15,315

 

16,027

 

Earnings Per Share

 

 

$

 

403

 

 

 

 

$

 

198

 

 

 

 

$

 

522

 

 

 

$

 

453

 

 

Actual shares outstanding at end of period

 

 

15,297

 

 

 

15,732

 

 

 

15,297

 

 

15,732

 

 

Highlights:

 

 

 

 

 

 

 

Capital expenditures

 

$

18,162

 

 

$

17,623

 

 

$

32,275

 

$

33,108

 

Government grants received

 

$

10,329

$

6,087

$

14,812

$ 

13,305 

LICT Corporation

Balance Sheet

(Unaudited)

 

(in thousands)

 

June 30,

2026

 

December 31, 2025

Assets:

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

13,783

 

$

11,684

Restricted cash

 

 

2,698

 

 

668

Accounts receivable, less allowances of $120 and $129, respectively

 

 

13,655

 

 

10,371

Grants receivable

 

 

3,255

 

 

3,340

Materials and supplies

 

 

16,596

 

 

11,822

Prepaid expenses and other current assets

 

 

4,611

 

 

4,517

Total current assets

 

 

54,597

 

 

42,402

Property, plant, and equipment, net

 

 

228,605

 

 

220,013

Goodwill

 

 

50,735

 

 

50,735

Other intangibles

 

 

33,355

 

 

33,611

Investments in affiliated companies

 

 

5,582

 

 

6,202

Other assets

 

 

10,439

 

 

10,783

Total assets

 

$

383,313

 

$

363,746

 

Liabilities:

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

7,515

 

$

8,951

Accrued interest payable

 

 

508

 

 

541

Accrued liabilities

 

 

19,570

 

 

11,088

Current maturities of long-term debt

 

 

3,884

 

 

7,731

Total current liabilities

 

$

31,477

 

$

28,311

Long-term debt

 

 

92,083

 

 

84,223

Deferred income taxes

 

 

35,890

 

 

36,566

Other liabilities

 

 

10,459

 

 

8,895

Total liabilities

 

 

169,909

 

 

157,995

Total shareholders’ equity

 

 

213,404

 

 

205,751

Total liabilities and shareholders’ equity

 

$

383,313

 

$ 

363,746 

About LICT Corporation

LICT Corporation and Subsidiaries (OTC Pink®: LICT) is a diversified broadband and communications company with operations in California, Kansas, Iowa, New Mexico, Oregon, Utah and Wisconsin. The Company also holds investments in wireless spectrum, including MachTen Inc., Aureon Network Services, CVIN LLC and the Kansas Fiber Network. LICT’s strategy is to serve customers with fiber, wireless and next-generation solutions and bring advanced connectivity services not only to rural areas, but also to adjacent urban markets, expanding its footprint and closing the digital divide. More information is available at lictcorp.com.

Cautionary Note Concerning Forward Looking Statements

This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com. As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material.

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